Venture further for yield

Venture further for yield Old problems, new solutions This document is for the exclusive use of investors acting on their own account and categorised either as eligible counterparties or professional clients within the meaning of markets in financial instruments directive 2004/39/ce Index Insights September 2017

Lyxor ETF Yield staples Old problems, new solutions Good yield hunting 4 European yield staples 6 US yield staples 8 UK yield staples 10 Global yield staples 12 Emerging Market debt 14 Our product range 16 Knowing your risk 18 Lyxor International Asset Management ( LIAM ) or its employees may have or maintain business relationships with companies covered in its research reports. As a result, investors should be aware that LIAM and its employees may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. Please see appendix at the end of this report for the analyst(s) certification(s), important disclosures and disclaimers. Alternatively, visit our global research disclosure website www.lyxoretf.com/compliance.

3 Welcome These days, getting more income from your investments means going that little bit further. Thankfully, there s little more comforting than travelling to somewhere you know well. Where there s little need for research, maps or awkward conversations in a different language. Where everything will be just so. But don t confuse staple with stale, even the most familiar of destinations can deliver a little excitement. And, as they are ETFs, they can do it a whole lot cheaper. Our range of yield staples includes the kind of dependable, enduring sources of yield you d expect to see at the heart of any income portfolio today credit, high yield bonds and high quality equity dividends. 45%+ of European bonds are still yielding less than 0% 0.5 0.45 0.4 0.35 0.3 0.25 0.2 0.15 0.1 00.5 0 Jul-14 Nov-14 Mar-15 Jul-15 Nov-15 Mar-16 Jul-16 Nov-16 Mar-17 Outstanding amount of government bonds yielding less the 0 (%total outstanding) Outstanding amount of corporate bonds yielding less the 0 (%total outstanding) Source: Lyxor, Bloomberg, 26 May 2017

Lyxor ETF Yield staples Good yield hunting No major surprises here corporate bonds, emerging debt and quality equity income remain dependable and enduring sources of income. Where will your search take you? Global Global equity income funds offer great diversification and, although yields are lower than in the UK, the income may be more sustainable. Government bonds yield = 1.01% Investment grade bonds yield = 2.50% High yield bonds yield = 5.12% Quality equity income yield = 4.84% US Improving growth numbers keep the outlook for credit (IG & HY) bright for now. The S&P 500 s yield is currently hovering around 2%, as it has for several years. Finding a higher yield means narrowing down your search. Choose your strategy wisely. Cash = 1.25% Government bonds yield = 2.29% Investment grade bonds yield = 3.8% High yield bonds yield = 5.46% Quality equity income yield = 2.94% Emerging market debt EM spreads have compressed, but improving fundamentals justify current valuations. Sovereign yields remain high, some carry should still be available and the risk/reward profile looks decent. Accommodative central banks and the slow pace of tightening elsewhere should keep investors keen. Emerging sovereigns yield = 4.85% EM corporates yield = 4.3% High yield EM corporates yield = 6.16% EM quality income dividend yield = 3.27% All data: Lyxor International Asset Management, Bloomberg. Data as at 31/07/17. Past performance is not a reliable indicator of future results.

5 UK IG & HY credit have a rosier long-term outlook than in the US provided Brexit issues don t disrupt growth. UK equities offer some of the best yields available, with the FTSE 100 forecast to yield 4% in 2017. However, it is also highly concentrated, so look to strategies capable of sharing the load. Cash = 0.20% Government bonds yield = 1.23% Investment grade bonds yield = 2.94% High yield bonds yield = 4.34% Quality equity income yield = 3.88% Europe Again, IG & HY credit have a rosier long-term outlook than in the US provided political risk keeps easing. Over to you Italy. The dividend pool is far deeper in Europe. Prospects also look strong, after a Q1 earnings season far stronger than anything we ve seen since 2010. Cash = -0.35% Government bonds yield = 1.13% Investment grade bonds yield = 0.77% High yield bonds yield = 2.41% Quality equity income yield = 5.45%

Lyxor ETF Yield staples European yield staples Investment grade credit For more cautious investors, investment grade bonds offer a natural route to more yield 95% of the Markit iboxx EUR Liquid Corporates 125 Mid-Price TCA Index is rated 'BBB' or above An ex-financials version is also available, offering exposure to the 20 largest and most liquid euro-denominated IG corporate bonds High yield bonds Should equities be a step too far, consider high yield The BofA Merrill Lynch BB-CCC Euro Developed Markets Non-Financial High Yield Constrained index holds over 350 EUR denominated sub-investment grade bonds from non-financial issuers If credit quality worries you, the Markit iboxx EUR High Yield Corporates BB Top 50 Mid Price TCA TRI Index tracks the 50 largest and most liquid EUR issues rated from BB- to BB+ Should rate rises be of concern, consider the BofA Merrill Lynch BB-CCC 1-3Year Euro Developed Markets High Yield Constrained Index Quality equity income From Brexit to elections, Europe has been and will continue to be in the headlines Opportunities for income abound, but you may want to limit your risk by focusing on steady and well performing companies The SG European Quality Income Index yields 5.45% and targets the 50 companies most capable of keeping their dividend promises High equity income If your focus is more on yield than quality, consider high income equities The STOXX Europe Select Dividend 30 index screens companies for positive dividend per share growth rates and dividend to earnings per share ratios, then weights what's left by the size of their dividend yields Did you know? % of active managers outperforming 10Y EUR IG 52% 40% EUR HY 35% 14% EUR DIV 28% 0% Source: Morningstar & Bloomberg data from 31/12/2006 to 31/12/2016. Past performance is not a reliable indicator of future results.

7 The numbers that matter Fixed income Index Avg. Number of bonds Top 3 countries Yield* Duration credit quality return return Markit iboxx EUR Liquid Corporates 125 Mid Price TCA TRI 125 Netherlands 22% Germany 14.6% France 14% 0.77% 4.82 A -0.52% 18.19% 1.96% 2.01% Markit iboxx EUR Liquid Non- Financials Mid Price TCA TRI 20 Netherlands 28.9% US 27% Germany 20.2% 1.07% 7.07 A -1.68% 17.42% 2.92% 2.39% BofA Merrill Lynch BB-CCC Euro Developed Markets Non-Financial High Yield Constrained 378 France 17.7% Luxembourg 16% Germany 12.7% 2.41% 4.52 BB 8.40% 48.16% N/A N/A BofA Merrill Lynch BB-CCC 1-3 Year Euro Developed Markets High Yield Constrained Index 92 Italy 22.7% France 14.1% Luxembourg 13.1% 1.66% 1. 7 BB 6.73% 34.12% N/A N/A Markit iboxx EUR High Yield Corporates BB Top 50 Mid Price TCA TRI 50 Luxembourg 20.3% Italy 20.2% US 10.6% 2.46% 4.22 BB 5.08% 9.86% 1.47% 2.87% *Yield refers to yield to maturity for investment grade indices, and yield to worst for high yield indices. Source: Lyxor International Asset Management/Bloomberg. Data as at 31/07/2017. Past performance is not a reliable indicator of future results. Equity income Index Number of stocks Top 3 sectors Top 3 countries Current dividend yield return return SG European Quality Income NTR Index 31 Utilities 25.7% Industrials 16.7% Telecommunication 16.2% UK 25.2% Spain 22.8% Finland 12.8% 5.45% 5.15% 49.78% 8.85% 13.54% STOXX Europe Select Dividend 30 index 30 Financials 30.8% Industrials 13.5% Energy 12.4% UK 26% France 21.5% Switzerland 12.2% 4.3% 9.98% 54.23% 9.83% 14.67% MSCI Europe Net Return EUR Index 444 Financials 21.1% Consumer staples 14.1% Industrials 13.2% UK 24.7% France 15.8% Germany 14.6% 3.39% 13.54% 62.31% 9.66% 15.41% Source: Lyxor International Asset Management/Bloomberg/STOXX. Data as at 31/07/2017. Past performance is not a reliable indicator of future results. Why Lyxor for European yield staples? #1 #1 #1 Quality income Purest quality exposure High yield Unique benchmark exposure IG bonds Lowest cost IG bond ETF you can buy Lyxor International Asset Management. Data as at 31/07/2017. Lowest cost European IG bond ETF is in relation to the European ETF market.

Lyxor ETF Yield staples US yield staples Investment grade credit For a conservative income stream with decent credit quality, consider the Markit iboxx USD Liquid Investment Grade 150 Mid Price TCA TRI Index Invests in the 150 largest and most liquid investment grade corporate bonds issued in USD Fewer than 1 in 5 managers outperform the IG benchmark over the long term* High yield bonds If you're looking for more income, high yield could hit the spot The Bank of America Merrill Lynch US High Yield Constrained Index is the reference benchmark for the high yield market With close to 1,000 issuers and 2,000 constituents, the index is bigger and more diversified than any of its peers Even though legend has it otherwise, far fewer than half of active managers in the sector outperform* Quality equity income The US is not known to be a high yielding market, but if you dig deeper, you can find a path to yield The FTSE USA Qual/Vol/Yield Factor 5% capped Index focuses on companies with strong balance sheets, low atility and an attractive dividend yield This helps deliver a yield of approximately 3%, without falling into any "yield traps", and it helps reduce atility by +20%** Did you know? Performance pushes passive (% of active managers outperforming)* 10Y US HY 29% 48% US IG 25% 17% *Source: Morningstar & Bloomberg data from 31/12/2006 to 31/12/2016. Past performance is not a reliable indicator of future results. **Source: FTSE Russell, data as of end of May 2017.

9 The numbers that matter Fixed income Index Number of bonds Yield* Duration Avg. credit quality return return Markit iboxx USD Liquid Investment Grade 150 Mid Price TCA TRI BofA Merrill Lynch US High Yield Constrained Index BofA Merrill Lynch BB-CCC 1-3 Year US High Yield Constrained Index 150 3.80% 9 A 1.10% 12.47% 4.79% 4.75% 1,872 5.46% 4.97 B 11.26% 14.32% 2.70% 3.15% 234 5.57 2.07 B 10.10% 35.89% N/A N/A *Yield refers to yield to maturity for investment grade indices, and yield to worst for high yield indices. Source: Lyxor International Asset Management/Bloomberg. Data as at 31/07/2017. Past performance is not a reliable indicator of future results. Quality equity income Index Number of stocks Top 3 sectors Current dividend yield return return FTSE USA Qual/Vol/Yield Factor 5% capped Index 149 Consumer staples 19.2% Information technology 17.6% Healthcare 14.9% 2.94% 8% 85.6% 7.2% 9% S&P 500 Net Total Return Index 505 Information technology 22.8% Financials 16.2% Healthcare 14.4% 1.98% 15.32% 92.96% 8.03% 12.22% Source: Lyxor International Asset Management/Bloomberg/FTSE Russell. Data as at 31/07/2017. Past performance is not a reliable indicator of future results. Why the BoAML $ High Yield Bond index? ~1,900 different index constituents ~900 different issuers 5.46% * yield B-BB * avg. credit rating *Source: Lyxor International Asset Management, as at 31/07/2017. Past performance is not a reliable indicator of future results. Why Lyxor for US yield staples? #1 #1 #1 Quality income Purest quality exposure High yield Unique benchmark IG bonds Lowest cost IG bond ETF you can buy* *Source: Lyxor International Asset Management, as at 31/07/2017. Lowest cost US IG bond ETF is in relation to the European ETF market..

Lyxor ETF Yield staples UK yield staples Investment grade credit Corporate bonds offer a more stable route to income The Markit iboxx GBP Liquid Corporates Long Dated Mid Price TCA TRI index invests in the 40 largest and most liquid sterling-denominated investment grade bonds Quality equity income The FTSE 100 has a high yield but comes with concentration risk, both at a stock level and a sector level The FTSE 350 ex Investment Trusts Qual/Vol/Yield Factor 5% capped Index starts from a broader universe The strategy selects UK companies that not only have a high trailing yield, but also low atility and high quality characteristics This helps deliver a yield of just under 4%, as well as reduce by atility by c.18%* Did you know? % of active managers outperforming 10Y UK Div 74% 48% Source: Morningstar & Bloomberg data from 31/12/2006 to 31/12/2016. Past performance is not a reliable indicator of future results. *Source: FTSE Russell, data as of end of May 2017.

11 The numbers that matter Fixed Income Index Number of bonds Yield* Duration Avg. credit quality return return Markit iboxx GBP Liquid Corporates Long Dated Mid Price TCA TRI FTSE Actuaries UK Conventional Gilts All Stocks Total Return 40 2.94% 9.67 A 2.74% 37.58% 6.73% 6.30% 45 1.56% 10.88 AA -2.54% 20.29% 6.86% 6.46% Source: Lyxor International Asset Management/Bloomberg. Data as at 31/07/2017. Past performance is not a reliable indicator of future results. Quality equity income Index Number of stocks Top 3 sectors Current dividend yield return return FTSE 350 ex Investment Trusts Qual/Vol/Yield Factor 5% capped Index 110 Consumer Staples 23.4% Consumer discretionary 20% Industrials 10.4% 3.88% 3.4% 65.3% 9.3% 9.8% FTSE 100 Total Return Index GBP 102 Financials 19.7% Consumer Staples 17.6% Energy 13.8% 4.12% 14.01% 57.66% 9.86% 13.79% Source: Lyxor International Asset Management/Bloomberg/FTSE Russell. Data as at 31/07/2017. Past performance is not a reliable indicator of future results. Why factor in quality, low atility and yield? Avoid the yield trap Be consistent Reduce risk Avoid companies paying a high yield for the wrong reasons High quality companies prove more resilient during periods of economic hardship The low atility screen helps filter out highly atile stocks Why Lyxor for UK yield staples? #1 #1 #1 Quality income Purest quality income exposure Quality income Lowest cost exposure* IG bonds Lowest cost IG bond ETF you can buy* *Source: Lyxor International Asset Management, as at 31/07/2017. Lowest cost UK quality income and IG bond ETF is in relation to the European ETF market.

Lyxor ETF Yield staples Global yield staples Global Most companies are still increasing or maintaining their dividends. Just over 10% are cutting them. Opportunities are out there If the world is your oyster, consider the SG Global Quality Income strategy SGQI currently yields over 4.84%* and targets the 75-125 companies most capable of keeping their dividend promises How the strategy works Starting with a universe of global developed world stocks with a market cap great than US$ 3bn, the strategy: Screens for quality using metrics on profitability, debt, cashflow, and operational efficiency Measures balance sheet strength by looking at amount of debt relative to assets Chooses companies with an expected dividend yield of at least 4%** * Source: Lyxor International Asset Management, as at 31/07/2017. Past performance is not a reliable indicator of future results. ** Upon quarterly index rebalance, and in order to maintain sufficient diversification (i.e. minimum number of stocks), rule may be relaxed to a dividend yield of 3.5%. Did you know? Performance pushes passive (% of active managers outperforming) 10Y Global Div 47% 4% Source: Morningstar & Bloomberg data from 31/12/2006 to 31/12/2016. Past performance is not a reliable indicator of future results.

13 The numbers that matter Quality equity income Index Number of stocks Top 3 sectors Top 3 countries Current dividend yield return return SG Global Quality Income NTR Index 75 Utilities 24.3% Telecommunication 17.6% Energy 14.8% US 25.3% Australia 13.1% Canada 10.8% 4.84% 0.51% 43.52% 8.41% 10.73% MSCI Daily TR Net World USD 1,654 Financials 19.1% Information Technology 15.9% Consumer Discretionary 12.4% US 57.1% Japan 8.7% UK 6.9% 2.43% 16.12% 73.32% 6.92 % 10.73% Source: Lyxor International Asset Management/Bloomberg. Data as at 31/07/2017. Past performance is not a reliable indicator of future results. How dividends look today Regional Composition of the 4%+ Dividend Yield Universe (by Market Cap) 60 Market cap % of total 4%+ universe 50 40 30 20 10 0 Oct-95 Oct-96 Oct-97 Oct-98 Oct-99 Oct-00 Oct-01 Oct-02 Oct-03 Oct-04 Oct-05 Oct-06 Oct-07 Oct-08 Oct-09 Oct-10 Oct-11 Oct-12 Oct-13 Oct-14 Oct-15 Oct-16 Asia Pacific ex Japan Europe Japan North America Source: SG Cross Asset Research/Equity Quant, MSCI, Factset. Data as at July 2017. Past performance is not a reliable indicator of future results. Why Lyxor for global yield staples? #1 #1 #1 Purest quality income exposure Lowest cost exposure* Most efficient quality income ETF* *Source: Lyxor International Asset Management, as at 31/07/2017. Lowest cost global quality income ETF is in relation to the European ETF market. Efficiency measured over a one year period. The rationale and construction of the efficiency measure are detailed in an academic paper published by Thierry Roncalli, former Head of Research & Development at Lyxor and Professor of Finance at the Evry University, and Marlene Hassine Konqui, ETF strategist. The academic paper can be downloaded from SSRN: http://ssrn.com/ abstract=2212596 or from REPEC http://ideas.repec.org/p/pra/mprapa/44298.html Past performance is not a reliable indicator of future results.

Lyxor ETF Yield staples Emerging market debt EMD Hard currency EMD is one of our favourite fixed income asset classes Greater competitiveness and economic improvements in Latin America and CEEMEA nations add real impetus The Fed s more gradual approach to normalisation and a brighter outlook for China add further support How the strategy works The Markit iboxx $ Liquid Emerging Markets Sovereigns Index tracks only the most liquid bonds on the market 38 securities, denominated in USD, issued by the 20 largest and most liquid EMs No direct exposure to China. Focus is on countries like Turkey, Indonesia, Mexico and Brazil Did you know? 1 in 3 managers outperformed their hard currency benchmarks over one year Fewer than 1 in 5 have done it over 10 years Source: Morningstar & Bloomberg data from 31/12/2006 to 31/12/2016. Past performance is not a reliable indicator of future results.

15 The numbers that matter EM fixed income Index Number of stocks Top 3 countries Yield* Duration Avg. credit quality return return Markit iboxx USD Liquid Emerging Markets Sovereigns Mid Price TCA TRI 38 Turkey 11.3% Indonesia 11.1% Mexico 9.5% 4.85% 7.97 BBB 1.83% 11.70% 7.55% 6.75% Source: Lyxor International Asset Management/Bloomberg. Data as at 31/07/2017. Past performance is not a reliable indicator of future results. EM fundamentals are improving 10 GDP growth (%, IMF forecast for 2017 and beyond) 8 6 4 2 0-2 -4-6 05 06 07 08 09 10 11 12 13 14 15 16 17 18 EM EM Ex China Dev. economies Source: SG Cross Asset Research/IMF Why Lyxor for EM yield staples? #1 #1 #1 Best performer* Lowest TER* Most efficient* *Source: Lyxor International Asset Management, as at 31/07/2017. Lowest cost EM debt ETF is in relation to the European ETF market. Efficiency measured over a one year period. The rationale and construction of the efficiency measure are detailed in an academic paper published by Thierry Roncalli, former Head of Research & Development at Lyxor and Professor of Finance at the Evry University, and Marlene Hassine Konqui, ETF strategist. The academic paper can be downloaded from SSRN: http://ssrn.com/abstract=2212596 or from REPEC http://ideas.repec.org/p/pra/mprapa/44298.html Past performance is not a reliable indicator of future results.

Lyxor ETF Yield staples Product Snapshot Lyxor ETF ISIN Main Ticker TER (bp)* Income Treatment AUM ( M)* ETF Trading Currency Underlying Index Currency Bloomberg index ticker Europe SG European Quality Income NTR LU0959210278 SGQE FP 45 D 41 EUR EUR SGQENTR STOXX Europe Select Dividend 30 FR0010378604 SEL FP 30 D 157 EUR EUR SD3R Euro Corporate Bond FR0010737544 CRP FP 20 C 1,120 EUR EUR IBXXLMD1 Euro Corporate Bond Ex Financials FR0010814236 CNB FP 20 C 229 EUR EUR IBXXNFM1 BofA Merrill Lynch Short Term High Yield Bond LU1617164998 HYS FP 30 D 30 EUR EUR H1EC iboxx EUR Liquid High Yield BB LU1215415214 HYBB FP 35 C 126 EUR EUR IBXXCBB1 BofAML High Yield Ex-Financial Bond FR0010975771 YIEL FP 45 D 268 EUR EUR HEDX US USD Liquid Investment Grade Corporate Bonds LU1285959703 USIG IM 9 D 291 USD USD IBXXLMD3 BofA Merrill Lynch $ High Yield Bond LU1435356149 USHY FP 30 D 237 USD USD HUC0 BofA Merrill Lynch $ High Yield Bond EUR Monthly Hedged BofA Merrill Lynch $ Short Term High Yield Bond BofAML $ Short Term High Yield Bond EUR Monthly Hedged LU1435356495 USYH IM 40 D 237 EUR EUR H0CE LU1617164055 HYST LN 30 D 39 USD USD H1AC LU1617164212 HYSTH IM 40 D 39 USD USD H1AE FTSE US Quality Low Vol Dividend FR0013235256 BUCK LN 19 D 8.6 USD USD FUSYQVCN UK iboxx GBP Liquid Corporates Long Dated LU1407891602 COUK FP 9 D 18 GBP GBP IBXXGBMT FTSE UK Quality Low Vol Dividend LU1603457992 DOSH LN 19 D 10 GBP GBP FNMIQV5T Global SG Global Quality Income NTR LU0855692520 SGQP LN 45 D 1,160 GBP EUR SGQINTR SG Global Quality Income NTR GBP Monthly Hedged LU1040688639 SGQX LN 45 C 1.60 GBP GBP SGQINRGH Emerging Markets iboxx $ Liquid Emerging Markets Sovereigns FR0010967323 LEMB FP 30 D 140 USD USD IBXXLES1 Source: Lyxor International Asset Management, as at 08/08/2017.

Venture further for yield Discover 25 ways to capture income With rate rises and tapering top of mind, income seekers could be in for a bumpy ride. We ve gone further than most to find the world s best equity and fixed income opportunities. Come and explore our range if you want to avoid the turbulence. Follow our lead. The original pioneers. lyxoretf.co.uk This communication is for professional clients only. This document is for the exclusive use of investors acting on their own account and categorised either as Eligible Counterparties or Professional Clients within the meaning of Markets In Financial Instruments Directive 2004/39/EC. These products comply with the UCITS Directive (2009/65/EC). Lyxor International Asset Management (Lyxor ETF) recommends that investors read carefully the investment risks section of the product s documentation (prospectus and KIID). The prospectus and KIID in English are available free of charge on www.lyxoretf.com, and upon request to client-services-etf@lyxor.com. Lyxor International Asset Management (Lyxor AM), société par actions simplifiée having its registered office at Tours Société Générale, 17 cours Valmy, 92800 Puteaux (France), 418 862 215 RCS Nanterre, is authorized and regulated by the Autorité des Marchés Financiers (AMF) under the UCITS Directive and the AIFM Directive (2011/31/EU). Lyxor ETF is represented in the UK by Lyxor Asset Management UK LLP, which is authorised and regulated by the Financial Conduct Authority in the UK under Registration Number 435658.

Lyxor ETF Yield staples Knowing your risk It is important for potential investors to evaluate the risks described below and in the fund prospectus on our website www.lyxoretf.com Capital at risk ETFs are tracking instruments: Their risk profile is similar to a direct investment in the Underlying index. Investors capital is fully at risk and investors may not get back the amount originally invested. Replication risk The fund objectives might not be reached due to unexpected events on the underlying markets which will impact the index calculation and the efficient fund replication. Counterparty risk Investors are exposed to risks resulting from the use of an OTC swap with Société Générale. In-line with UCITs guidelines, the exposure to Société Générale cannot exceed 10% of the total fund assets. Physically replicated ETFs may have counterparty risk resulting from the use of a securities lending programme. Concentration risk Smart Beta ETFs select stocks or bonds for their portfolio from the original benchmark index. Where selection rules are extensive it can lead to a more concentrated portfolio where risk is spread over fewer stocks than the original benchmark. Underlying risk The Underlying index of a Lyxor ETF may be complex and atile. When investing in commodities, the Underlying index is calculated with reference to commodity futures contracts exposing the investor to a liquidity risk linked to costs such as cost of carry and transportation. ETFs exposed to Emerging Markets carry a greater risk of potential loss than investment in Developed Markets as they are exposed to a wide range of unpredictable Emerging Market risks. Currency risk ETFs may be exposed to currency risk if the ETF is denominated in a currency different to that of the Underlying index they are tracking. This means that exchange rate fluctuations could have a negative or positive effect on returns. Liquidity risk Liquidity is provided by registered market-makers on the respective stock exchange where the ETF is listed, including Société Générale. On exchange, liquidity may be limited as a result of a suspension in the underlying market represented by the Underlying index tracked by the ETF; a failure in the systems of one of the relevant stock exchanges, or other market-maker systems; or an abnormal trading situation or event.

Important information This communication is exclusively directed and available to Institutional Investors as defined by the 2004/39/EC Directive on markets in financial instruments acting for their own account and categorised as eligible counterparties or professional clients. This communication is not directed at retail clients. This document is issued in the UK by Lyxor Asset Management UK LLP, which is authorized and regulated by the Financial Conduct Authority in the UK under Registration Number 435658. Some of the funds described in this brochure are investment companies with Variable Capital (SICAV) incorporated under Luxembourg Law, listed on the official list of Undertakings for Collective Investment, authorised under Part I of the Luxembourg Law of 17th December 2010 (the 2010 Law ) on Undertakings for Collective Investment in accordance with provisions of the Directive 2009/65/EC (the 2009 Directive ) and subject to the supervision of the Commission de Surveillance du Secteur Financier (CSSF). These funds are sub-funds of either Multi Units Luxembourg or Lyxor Index Fund and have been approved by the CSSF. Alternatively, some of the funds described in this document are sub-funds of Multi Units France a French SICAV incorporated under the French Law and approved by the French Autorité des marchés financiers. Each fund complies with the UCITS Directive (2009/65/CE), and has been approved by the French Autorité des marchés financiers. Société Générale and Lyxor AM recommend that investors read carefully the risk factors section of the product s prospectus and Key Investor Information Document (KIID). The prospectus and the KIID are available in French on the website of the AMF (www.amf-france.org). The prospectus in English and the KIID in the relevant local language (for all the countries referred to, in this document as a country in which a public offer of the product is authorised) are available free of charge on lyxoretf.com or upon request to client-services-etf@lyxor.com The products are the object of market-making contracts, the purpose of which is to ensure the liquidity of the products on NYSE Euronext Paris, Deutsche Boerse (Xetra) and the London Stock Exchange, assuming normal market conditions and normally functioning computer systems. Units of a specific UCITS ETF managed by an asset manager and purchased on the secondary market cannot usually be sold directly back to the asset manager itself. Investors must buy and sell units on a secondary market with the assistance of an intermediary (e.g. a stockbroker) and may incur fees for doing so. In addition, investors may pay more than the current net asset value when buying units and may receive less than the current net asset value when selling them. Updated composition of the product s investment portfolio is available on www. lyxoretf.com. In addition, the indicative net asset value is published on the Reuters and Bloomberg pages of the product, and might also be mentioned on the websites of the stock exchanges where the product is listed. Prior to investing in the product, investors should seek independent financial, tax, accounting and legal advice. It is each investor s responsibility to ascertain that it is authorised to subscribe, or invest into this product. This document together with the prospectus and/or more generally any information or documents with respect to or in connection with the Fund does not constitute an offer for sale or solicitation of an offer for sale in any jurisdiction (i) in which such offer or solicitation is not authorized, (ii) in which the person making such offer or solicitation is not qualified to do so, or (iii) to any person to whom it is unlawful to make such offer or solicitation. In addition, the shares are not registered under the U.S Securities Act of 1933 and may not be directly or indirectly offered or sold in the United States (including its territories or possessions) or to or for the benefit of a U.S Person (being a United State Person within the meaning of Regulation S under the Securities Act of 1933 of the United States, as amended, and/or any person not included in the definition of Non-United States Person within the meaning of Section 4.7 (a) (1) (iv) of the rules of the U.S. Commodity Futures Trading Commission). No U.S federal or state securities commission has reviewed or approved this document and more generally any documents with respect to or in connection with the fund. Any representation to the contrary is a criminal offence. This document is of a commercial nature and not of a regulatory nature. This document does not constitute an offer, or an invitation to make an offer, from Société Générale, Lyxor Asset Management (together with its affiliates, Lyxor AM) or any of their respective subsidiaries to purchase or sell the product referred to herein. These funds include a risk of capital loss. The redemption value of this fund may be less than the amount initially invested. The value of this fund can go down as well as up and the return upon the investment will therefore necessarily be variable. In a worst case scenario, investors could sustain the loss of their entire investment. This document is confidential and may be neither communicated to any third party (with the exception of external advisors on the condition that they themselves respect this confidentiality undertaking) nor copied in whole or in part, without the prior written consent of Lyxor AM or Société Générale. The obtaining of the tax advantages or treatments defined in this document (as the case may be) depends on each investor s particular tax status, the jurisdiction from which it invests as well as applicable laws. This tax treatment can be modified at any time. We recommend to investors who wish to obtain further information on their tax status that they seek assistance from their tax advisor. The attention of the investor is drawn to the fact that the net asset value stated in this document (as the case may be) cannot be used as a basis for subscriptions and/or redemptions. The market information displayed in this document is based on data at a given moment and may change from time to time. Authorizations: Lyxor International Asset Management (Lyxor AM) is a French management company authorized by the Autorité des marchés financiers and placed under the regulations of the UCITS (2009/65/EC) and AIFM (2011/61/EU) Directives. Société Générale is a French credit institution (bank) authorised by the Autorité de contrôle prudentiel et de résolution (the French Prudential Control Authority. CONFLICTS OF INTEREST This research contains the views, opinions and recommendations of Lyxor International Asset Management ( LIAM ) Cross Asset and ETF research analysts and/or strategists. To the extent that this research contains trade ideas based on macro views of economic market conditions or relative value, it may differ from the fundamental Cross Asset and ETF Research opinions and recommendations contained in Cross Asset and ETF Research sector or company research reports and from the views and opinions of other departments of LIAM and its affiliates. Lyxor Cross Asset and ETF research analysts and/or strategists routinely consult with LIAM sales and portfolio management personnel regarding market information including, but not limited to, pricing, spread levels and trading activity of ETFs tracking equity, fixed income and commodity indices. Trading desks may trade, or have traded, as principal on the basis of the research analyst(s) views and reports. Lyxor has mandatory research policies and procedures that are reasonably designed to (i) ensure that purported facts in research reports are based on reliable information and (ii) to prevent improper selective or tiered dissemination of research reports. In addition, research analysts receive compensation based, in part, on the quality and accuracy of their analysis, client feedback, competitive factors and LIAM s total revenues including revenues from management fees and investment advisory fees and distribution fees.

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